The Credit Offtake & Deposit Growth Gap Continues to Narrow

Synopsis

Credit growth is trending down and continues to converge with deposit growth on an annual basis. Further, if growth rate is compared with December 2023, deposit and credit growth are generally in line with each other.
- Credit offtake increased by 7.3% compared to December 2023 and touched Rs. 171.2 lakh crore as of September 20, 2024. Personal loans and MSMEs account for the bulk of this increase, with corporate credit also contributing to the same. This slowdown compared to last year can be attributed a higher base effect and RBI measures such as higher risk weights and the proposed LCR norms.
- Deposits rose at 7.1% compared to December 2023 and reached Rs. 215.1 lakhs crore as of September 20, 2024, driven by growth in time deposits.
The Short-term Weighted Average Call Rate (WACR) has dropped to 6.61% as of September 27, 2024, compared to 6.75% as of September 29, 2023.